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Which of the Following Is a Simplifying Assumption Associated with the Short-Run

Question 1

Multiple Choice

Which of the following is a simplifying assumption associated with the short-run Keynesian model of equilibrium real Gross Domestic Product (GDP) determination?


A) Gross private domestic investment exceeds net private domestic investment.
B) Most business profits are distributed to shareholders.
C) Businesses pay indirect taxes.
D) There is no depreciation.

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